Nigeria Loses ₦8bn Monthly to Grid Inefficiencies – NISO

The Nigerian Independent System Operator (NISO) says the country’s power sector is losing between ₦5bn and ₦8bn monthly due to transmission inefficiencies.

Managing Director Abdu Bello disclosed this during NISO’s first anniversary celebration in Abuja, noting that transmission losses were close to 10% at inception, but have now been reduced to 7.05%, with a target of 5–6%.

Bello said the past year has focused on institution-building, stabilising the grid, and enforcing market reforms.

“Today, we are not just celebrating one year of existence; we are reflecting on one year of deliberate effort, institutional progress, and measurable impact,” he stated.

He explained that NISO was established in 2024 after the unbundling of the Transmission Company of Nigeria (TCN), with a mandate to oversee system operations, market administration, and enforcement of grid codes.

A major highlight is the push to digitise grid operations. Bello said NISO is accelerating deployment of SCADA/Energy Management Systems and telemetry infrastructure to enable real-time monitoring and market settlements.

He added that regulators have ordered distribution companies to install IoT meters on feeders, which will give end-to-end visibility across generation, transmission, and distribution.

“With that, our efficiency and effectiveness in managing the grid will be tremendously enhanced,” Bello said.

NISO is also introducing grid islanding to prevent nationwide blackouts, while enforcing compliance with frequency response standards.

Bello noted that several generating units have already improved grid stability by adopting the free-governor mode of operation.